“Americans spend quite a bit using credit cards around the holidays,” said Charles Tran, founder of CreditDonkey.com, a credit card comparison. “But they don’t always recognize the negative implications of only making minimum bill payments.”

The “Jacob Marley Christmas Debt Chart,” developed using data compiled separately by Gallup and the Federal Reserve, is designed as a tool to educate consumers about wise use of credit cards at the holidays. The chart estimates an average American consumer needs to add about $64 a month to his or her regular credit card payment to clear this year's holiday debt in time for next year's Christmas.

The estimates are surrounded by images and data that put Christmas celebrations in the historical context of Charles Dickens’ Victorian England, the dawn of the industrial revolution when religious, social and consumer traditions became the foundations of the holiday most Americans know today.

Taking data from Gallup’s monthly survey of consumers about their planned holiday spending and applying to that the Federal Reserve’s average credit card interest rate (13.08% APR for accounts assessed interest in Q3 as of December 7, 2011), the chart creates a prototypical American consumer and projects how long it would take him or her to clear holiday debt by making minimum credit card payments. For comparison, the chart also calculates an alternative monthly payment sufficient to clear the same debt in 12 months.

While few people today plan far enough ahead to put a monthly deposit in a segregated, interest-bearing Christmas Club account, consumers still can strategically amortize the cost of Christmas 2011 across 12 months and minimize the interest they pay. The Jacob Marley Christmas Debt Chart shows young consumers how to develop and manage their own rolling Christmas Club using credit.

“A strong fourth quarter is always good for the American economy, but it’s never good when consumers come out of the holidays loaded down with unmanaged debt,” said Tran. “We’re suggesting people pick up some of the old habits of discipline and apply them to convenient new credit tools to participate more productively in a healthier economy.”

Follow@CreditDonkey or write to Annette O'Connor at annette@creditdonkey.comAnnette O'Connor is a contributing features writer at CreditDonkey, a credit card comparison and financial education website. Our data-driven analysis has been recognized by major news outlets across the country and has helped young adults make savvy financial and lifestyle decisions. (read more)

More Americans are looking for a good value this holiday season. This is driving consumers online as people expect benefits such as free shipping deals, convenience and more variety. Not to the mention, there is no need to worry about traffic or ...

Articles on Ghost of Christmas Could Haunt Average American for 4 Years

What do you think about Ghost of Christmas Could Haunt Average American for 4 Years?

You might also be interested in

In America alone, more than 250 million tons of trash is produced each year, some of which is discarded as litter along roads, on city streets, in parks and across the nation's waterways. Read on for 23 littering statistics that will blow your mind.

About CreditDonkey® CreditDonkey is a credit card comparison website. We publish data-driven analysis to help you save money & make savvy financial decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: The card offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.